Human Capital: Ideas, the Internet and Microsoft

“Practically every day, 140 million out of the 170 million people who use personal computers (PCs) turn on their machines and see the words “Starting MS-DOS” (or a similar message). Seventy million people see another message- “Microsoft Windows”- as their computer screens fill up with graphical symbols called icons.” Microsoft Corporation is one of the largest technology companies in the world, with a value of $73.72 billion. It has changed the face of modern technology since it was established in August 1975 by Bill Gates and Paul Allen, and is currently the largest software company in the world. This essay will look at the history and development of the Microsoft Corporation that led to its position as one of the leading global corporations today, how the company has progressed over time and the impact it has had on today’s technology-driven society.

Microsoft was established at Albuquerque, New Mexico in July 1975 by Bill Gates and Paul Allen. Microsoft’s main area of business at the time was software development for microcomputers with a particular aim in developing languages for these microcomputers. Microsoft particularly focused on developing a computer language called BASIC for the world’s first microcomputer, Altair. However, since then, Microsoft has “entered every market that relates to computers and information technology, from children’s video games to corporate networking, interactive TV, and on-line network services”. Some of the products: Xbox, Windows Phone, Bing decision engine, Microsoft Office and many more. This has allowed Microsoft to generate power and become a global corporation. This is supported by the fact that Microsoft has shifted from selling programming languages and operating systems to com...

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...one extremely well, battling numerous competitors to stay relevant within the market and continue to grow. This is emphasised by the fact that it is the largest software vendor in the world. However, globalization has allowed monopolistic competition to occur as there are now other firms in the market that compete with Microsoft. This has affected the supply, demand and market shares of Microsoft depending on which market it is. E.g. they now supply a wider range of products from search engines to games consoles to stay within the market, cater to people’s needs and generate more wealth. Nevertheless, there is no denying that Microsoft has been a key figure in making software what it is today and that it has accomplished huge success since it was established in 1975. “No current or future user of a computer can really avoid or afford to ignore what Microsoft does”.